Report of the School Funding Formula Task Force

L 1335.51/1 S327f 2007 c.1
..
REPORT OF THE
SCHOOL FUNDING
FORMULA
TASKFORCE
Adopted December 28, 2007
Claudia San Pedro, Chair
Claudia San Pedro was elected by the members to serve as chair of the task
force.
Meetings:
The task force held five meetings from October 31,2007, to December 28,2007.
Members heard presentations from Shawn Hime, Assistant State Superintendent
of Education, concerning the current methods that are used to calculate the
formula, as well as possible revisions to the formula for the task force to
consider. Members of the task force also heard presentations from Senate Staff
regarding issues raised by recent school finance litigation, the effect of lottery
revenues on funding for public education, and the study by Augenblick, Palaich
and Associates, Inc. that was prepared in April of 2005.
Revisions to the School Funding Formula that were presented by Shawn Hime
included various scenarios by which the formula might be simplified, as well as
scenarios by which the teacher index in the formula might better represent the
current teachers' minimum salary schedule in statute. Members of the task force
discussed these scenarios as well as the potential fiscal impacts, legal issues,
and other ramifications of each scenario. They also held further discussions
including whether or not to utilize the study by Augenblick, Palaich and
Associates, Inc. as a basis for looking at Oklahoma's school funding formula.
Recommendations:
Members of the task force voted to recommend to the Legislature a change to
the formula that would simplify the calculation while minimizing the impact to
districts throughout the state. The vote was to change the formula from the
calculation structure in appendix A to the calculation structure in appendix B.
This change would require additional funding of approximately $4.3 million in
order to allow all districts to maintain at least their current level of funding.
The task force also brought forth new ideas and discussions for future meetings,
but since the task force expired as of December 31, 2007, they were unable to
consider these further possibilities.
As a result, the task force respectfully submits this report to the Legislature, and
requests that their duties be extended to continue a thorough examination of the
school funding formula in order to make further recommendations to the
Legislature.
Task Force Extension and Future Meetings:
In the event that the task force is granted an extension, future meetings and
discussions would include the following items:
Report of the School Funding Formula Task Force
December 28, 2007
Introduction and Purpose:
The School Funding Formula Task Force was created pursuant to SB 925 of the
2007 Session, authored by Sen. Clark Jolley and Rep. Ken Miller. The task force
was charged with studying the following issues and submitting a report of
findings and recommendations to the Governor and Legislature by December 31,
2007:
1. Modernization of the formula;
2. The ability to determine how categorical funds are expended;
3. Issues raised by recent school finance litigation; and
4. Any other modifications to the formula that would enhance the state's
ability to provide every child with quality instruction.
Membership:
The task force was comprised of eight members selected from among public and
private school educators and members of the business community, excluding
any elected officials. The members, their professional affiliation and appointing
authorities were as follows:
• Janet Barresi, DDS, Dentist, appointed by the Co-President Pro Tempore
of the Senate
• Dr. Larry Burdick, Superintendent - Pryor Public Schools, appointed by
the President Pro Tempore of the Senate
• Dallas Caldwell, Headmaster - Oklahoma Christian School (Edmond),
appointed by the Speaker of the House
• Steven Crawford, Superintendent - Byng Public Schools, appointed by a
Co-Chair of the Senate Appropriations Subcommittee on Education
• Dr. David Goin, Superintendent - Edmond Public Schools, appointed by a
Co-Chair of the Senate Appropriations Subcommittee on Education
• Claudia San Pedro, Vice President of Investor Relations and Treasurer -
Sonic Corporation, appointed by the Governor
• Bill Seitter, Superintendent - Weatherford Public Schools, appointed by
the Minority Leader of the House
• Bill White, Interim Director - CCOSA, appointed by the Chair of the House
Education Committee
• The impact of using total assessed valuation to calculate the chargeable
amount in the formula should be reviewed, researched and studied to
determine if change is needed.
• A more in depth study would be conducted for all of the formula weights.
The task force would like to give specific attention to the weights that are
calculated for students at each grade level, special education weights, as
well as the weight for economically disadvantaged students. Furthermore,
the task force would like to conduct a more in depth study into the teacher
index weight, as this item has already been discussed at length during
previous task force meetings and requires further attention.
• The task force would like to explore an automatic cost of living adjustment for
the state aid formula for future years. This study would include exploration
into what other states have done in this area as well as measurement of
potential future impacts and ramifications of such an adjustment.
• The task force would also like to explore new ideas in order to more
sufficiently compensate districts for the student population growth that they
experience each year.
• Finally, the task force would like to further discuss their concem that the state
aid formula has not received any "significant" operational funding, outside of
obligated funding, since the early 1990's.
Appendix A
CALCULATING THE STATE AID FORMULA
FOUNDATION AID
Weighted ADM __ 5_0_0_.__0o x Foundation Aid Factor $1,602.00 = 801,000.00 (l)
SUBTRACT CHARGEABLE INCOME
(Valuations: Up to 11% - Down to 11%)
$10,000,000
150,000.00
2006 Net Assessed Valuation (In January: 2007 Net Assessed Valuation)
Adjusted Valuation x 15 mills: x.015 *
*plus increased millage because of personal property tax adjustment
(2004-05 Collections of [10 mths current and 2 mths of prior]:)
=
75% of County 4-Mill Levy
School Land
100,000 x.75 = 75,000.00
25,000.00
50,000.00
25,000.00
0.00
325,000.00 (2)
476,000 (3)
Gross Production
Motor Vehicle Collections
R.E.A. Tax
TOTALCHARGEABLES TOTAL =
FOUNDATION AID TOTAL (Amount [1] Less Amount [2])
(Zero if Less Than Zero)
=
TRANSPORTATION:
(Average Daily Haul x Per Capita x Transportation Factor)
00 x 000 x 1.39 TOTAL = 0 (4)
____.___.._..._~_DH. .__ts: Cap!!.~._,_, -.Ic~nsf!._.F_a~q~ __ ,_.,__,,_,, ,_, ,,_, ,__, _ , ,,_,_
SALARY INCENTIVE AID
A..---$'7-7.-48-- Incentive Aid Factor 500.00
(Weighted ADM)
B. 10,000,000 Adjusted District Assessed Valuation /1000
x ------- = 38,740. 00 סס
= 10,000.0000
c. Step A (-) Step B
Step C x 20 Mills =
= 28,740.0000
SALARY INCENTIVE AID = 574,800 (5)
TOTAL STATE AID (Amount 3 + 4 + 5) = 1,050,800
CALCULATING THE STATE AID FORMULA
STATE AID
Weighted ADM 500.00 x State Aid Factor $3,151.60
SUBTRACT CHARGEABLE REVENUE
(Valuations: Up to 11% - Down to 11%)
2007 Net Assessed Valuation (In January: 2008 Net Assessed Valuation)
Adjusted Valuation $10,000,000.00 x .035* (35 mills)
*plus increased millage because oj personal property tax adjustment
2006-07 Collections:
(Initial A /location: 10 months preceding fiscal year and 2 months second preceding fiscal year)
(Midyear Adjustment: 12 months preceding fiscal year)
75% of County 4-Mill Levy
School Land
$100,000.00 x.75
Gross Production
Motor Vehicle Collections
R.E.A. Tax
TOTAL CHARGEABLES TOTAL
TOTAL STATE AID (Line 1minus Line 2)
$1,575,800.00 (I)
$350,000.00
$75,000.00
25,000.00
50,000.00
25,000.00
0.00
$525,000.00 (2)
$1,050,800.00 (3)
and
ENROLLED SENATE
BILL NO. 925 By: Jolley of the Senate
Miller of the House
An Act relating to schools; creating the School
Funding Formula Task Force; stating issues that task
force shall study; providing for membership,
appointment, election of chair, quorum, staff
support, and travel reimbursement; requiring
compliance with Oklahoma Open Meeting Act and
Oklahoma Open Records Act; requiring report of
findings and recommendations by certain deadline;
providing for noncodification; providing an effective
date; and declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law not to be
codified in the Oklahoma Statutes reads as follows:
A. There is hereby created to continue until December 31, 2007,
the School Funding Formula Task Force. The task force shall review
the statutorily created formula for funding the public schools of
this state and make recommendations regarding the following:
1. Modernization of the formula;
2. The ability to determine how categorical funds are expended;
3. Issues raised by recent school finance litigation; and
4. Any other modifications to the formula that would enhance
the state's ability to provide every child with quality instruction.
B. The School Funding Formula Task Force shall consist of eight
(8) members who shall be selected from among public and private
school educators and members of the business community, appointed
by:
1. The Governor;
2. The President Pro Tempore of the State Senate;
3. The Co-President Pro Tempore of the State Senate;
4. The Speaker of the Oklahoma House of Representatives;
5. The Minority Leader of the Oklahoma House of
Representatives;
6. Each of the CO-Chairs of the Senate Appropriations
Subcommittee on Education; and
7. The Chair of the House Education Committee.
C. Appointments to the task force shall be made by August 31,
2007. The member appointed by the Governor shall convene the first
meeting of the task force by September 30, 2007. Members of the
task force shall elect a chair from among the membership. A
majority of the members of the task force shall constitute a quorum
to transact business, but no vacancy shall impair the right of the
remaining members to exercise all of the powers of the task force.
D. Staff support for the task force shall be provided by the
State Senate and the Oklahoma House of Representatives.
E. Members of the School Funding Formula Task Force shall
receive no compensation for serving on the task force, but shall
receive travel reimbursement as follows:
1. Legislative members of the task force shall be reimbursed
for their necessary travel expenses incurred in the performance of
ENR. S. B. NO. 925 Page 2
their duties in accordance with Section 456 of Title 74 of the
Oklahoma Statutes; and
2. Nonlegislative members of the task force shall be reimbursed
by their respective appointing authorities for their necessary
travel expenses incurred in the performance of their duties in
accordance with the State Travel Reimbursement Act.
F. The proceedings of all meetings of the task force shall
comply with the provisions of the Oklahoma Open Meeting Act and the
Oklahoma Open Records Act.
G. The task force shall study the subject matter specified in
subsection A of this section and submit a report of findings and
recommendations to the Governor and Legislature by December 31,
2007.
SECTION 2. This act shall become effective July I, 2007.
SECTION 3. It being immediately necessary for the preservation
of the public peace, health and safety, an emergency is hereby
declared to exist,by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
Passed the Senate the 24th day of May, 2007.
Presiding Officer of the Senate
Passed the House of Representatives the 24th day of May, 2007.
Presiding Officer of the House
of Representatives
ENR. S. B. NO. 925 Page 3
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L 1335.51/1 S327f 2007 c.1
..
REPORT OF THE
SCHOOL FUNDING
FORMULA
TASKFORCE
Adopted December 28, 2007
Claudia San Pedro, Chair
Claudia San Pedro was elected by the members to serve as chair of the task
force.
Meetings:
The task force held five meetings from October 31,2007, to December 28,2007.
Members heard presentations from Shawn Hime, Assistant State Superintendent
of Education, concerning the current methods that are used to calculate the
formula, as well as possible revisions to the formula for the task force to
consider. Members of the task force also heard presentations from Senate Staff
regarding issues raised by recent school finance litigation, the effect of lottery
revenues on funding for public education, and the study by Augenblick, Palaich
and Associates, Inc. that was prepared in April of 2005.
Revisions to the School Funding Formula that were presented by Shawn Hime
included various scenarios by which the formula might be simplified, as well as
scenarios by which the teacher index in the formula might better represent the
current teachers' minimum salary schedule in statute. Members of the task force
discussed these scenarios as well as the potential fiscal impacts, legal issues,
and other ramifications of each scenario. They also held further discussions
including whether or not to utilize the study by Augenblick, Palaich and
Associates, Inc. as a basis for looking at Oklahoma's school funding formula.
Recommendations:
Members of the task force voted to recommend to the Legislature a change to
the formula that would simplify the calculation while minimizing the impact to
districts throughout the state. The vote was to change the formula from the
calculation structure in appendix A to the calculation structure in appendix B.
This change would require additional funding of approximately $4.3 million in
order to allow all districts to maintain at least their current level of funding.
The task force also brought forth new ideas and discussions for future meetings,
but since the task force expired as of December 31, 2007, they were unable to
consider these further possibilities.
As a result, the task force respectfully submits this report to the Legislature, and
requests that their duties be extended to continue a thorough examination of the
school funding formula in order to make further recommendations to the
Legislature.
Task Force Extension and Future Meetings:
In the event that the task force is granted an extension, future meetings and
discussions would include the following items:
Report of the School Funding Formula Task Force
December 28, 2007
Introduction and Purpose:
The School Funding Formula Task Force was created pursuant to SB 925 of the
2007 Session, authored by Sen. Clark Jolley and Rep. Ken Miller. The task force
was charged with studying the following issues and submitting a report of
findings and recommendations to the Governor and Legislature by December 31,
2007:
1. Modernization of the formula;
2. The ability to determine how categorical funds are expended;
3. Issues raised by recent school finance litigation; and
4. Any other modifications to the formula that would enhance the state's
ability to provide every child with quality instruction.
Membership:
The task force was comprised of eight members selected from among public and
private school educators and members of the business community, excluding
any elected officials. The members, their professional affiliation and appointing
authorities were as follows:
• Janet Barresi, DDS, Dentist, appointed by the Co-President Pro Tempore
of the Senate
• Dr. Larry Burdick, Superintendent - Pryor Public Schools, appointed by
the President Pro Tempore of the Senate
• Dallas Caldwell, Headmaster - Oklahoma Christian School (Edmond),
appointed by the Speaker of the House
• Steven Crawford, Superintendent - Byng Public Schools, appointed by a
Co-Chair of the Senate Appropriations Subcommittee on Education
• Dr. David Goin, Superintendent - Edmond Public Schools, appointed by a
Co-Chair of the Senate Appropriations Subcommittee on Education
• Claudia San Pedro, Vice President of Investor Relations and Treasurer -
Sonic Corporation, appointed by the Governor
• Bill Seitter, Superintendent - Weatherford Public Schools, appointed by
the Minority Leader of the House
• Bill White, Interim Director - CCOSA, appointed by the Chair of the House
Education Committee
• The impact of using total assessed valuation to calculate the chargeable
amount in the formula should be reviewed, researched and studied to
determine if change is needed.
• A more in depth study would be conducted for all of the formula weights.
The task force would like to give specific attention to the weights that are
calculated for students at each grade level, special education weights, as
well as the weight for economically disadvantaged students. Furthermore,
the task force would like to conduct a more in depth study into the teacher
index weight, as this item has already been discussed at length during
previous task force meetings and requires further attention.
• The task force would like to explore an automatic cost of living adjustment for
the state aid formula for future years. This study would include exploration
into what other states have done in this area as well as measurement of
potential future impacts and ramifications of such an adjustment.
• The task force would also like to explore new ideas in order to more
sufficiently compensate districts for the student population growth that they
experience each year.
• Finally, the task force would like to further discuss their concem that the state
aid formula has not received any "significant" operational funding, outside of
obligated funding, since the early 1990's.
Appendix A
CALCULATING THE STATE AID FORMULA
FOUNDATION AID
Weighted ADM __ 5_0_0_.__0o x Foundation Aid Factor $1,602.00 = 801,000.00 (l)
SUBTRACT CHARGEABLE INCOME
(Valuations: Up to 11% - Down to 11%)
$10,000,000
150,000.00
2006 Net Assessed Valuation (In January: 2007 Net Assessed Valuation)
Adjusted Valuation x 15 mills: x.015 *
*plus increased millage because of personal property tax adjustment
(2004-05 Collections of [10 mths current and 2 mths of prior]:)
=
75% of County 4-Mill Levy
School Land
100,000 x.75 = 75,000.00
25,000.00
50,000.00
25,000.00
0.00
325,000.00 (2)
476,000 (3)
Gross Production
Motor Vehicle Collections
R.E.A. Tax
TOTALCHARGEABLES TOTAL =
FOUNDATION AID TOTAL (Amount [1] Less Amount [2])
(Zero if Less Than Zero)
=
TRANSPORTATION:
(Average Daily Haul x Per Capita x Transportation Factor)
00 x 000 x 1.39 TOTAL = 0 (4)
____.___.._..._~_DH. .__ts: Cap!!.~._,_, -.Ic~nsf!._.F_a~q~ __ ,_.,__,,_,, ,_, ,,_, ,__, _ , ,,_,_
SALARY INCENTIVE AID
A..---$'7-7.-48-- Incentive Aid Factor 500.00
(Weighted ADM)
B. 10,000,000 Adjusted District Assessed Valuation /1000
x ------- = 38,740. 00 סס
= 10,000.0000
c. Step A (-) Step B
Step C x 20 Mills =
= 28,740.0000
SALARY INCENTIVE AID = 574,800 (5)
TOTAL STATE AID (Amount 3 + 4 + 5) = 1,050,800
CALCULATING THE STATE AID FORMULA
STATE AID
Weighted ADM 500.00 x State Aid Factor $3,151.60
SUBTRACT CHARGEABLE REVENUE
(Valuations: Up to 11% - Down to 11%)
2007 Net Assessed Valuation (In January: 2008 Net Assessed Valuation)
Adjusted Valuation $10,000,000.00 x .035* (35 mills)
*plus increased millage because oj personal property tax adjustment
2006-07 Collections:
(Initial A /location: 10 months preceding fiscal year and 2 months second preceding fiscal year)
(Midyear Adjustment: 12 months preceding fiscal year)
75% of County 4-Mill Levy
School Land
$100,000.00 x.75
Gross Production
Motor Vehicle Collections
R.E.A. Tax
TOTAL CHARGEABLES TOTAL
TOTAL STATE AID (Line 1minus Line 2)
$1,575,800.00 (I)
$350,000.00
$75,000.00
25,000.00
50,000.00
25,000.00
0.00
$525,000.00 (2)
$1,050,800.00 (3)
and
ENROLLED SENATE
BILL NO. 925 By: Jolley of the Senate
Miller of the House
An Act relating to schools; creating the School
Funding Formula Task Force; stating issues that task
force shall study; providing for membership,
appointment, election of chair, quorum, staff
support, and travel reimbursement; requiring
compliance with Oklahoma Open Meeting Act and
Oklahoma Open Records Act; requiring report of
findings and recommendations by certain deadline;
providing for noncodification; providing an effective
date; and declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law not to be
codified in the Oklahoma Statutes reads as follows:
A. There is hereby created to continue until December 31, 2007,
the School Funding Formula Task Force. The task force shall review
the statutorily created formula for funding the public schools of
this state and make recommendations regarding the following:
1. Modernization of the formula;
2. The ability to determine how categorical funds are expended;
3. Issues raised by recent school finance litigation; and
4. Any other modifications to the formula that would enhance
the state's ability to provide every child with quality instruction.
B. The School Funding Formula Task Force shall consist of eight
(8) members who shall be selected from among public and private
school educators and members of the business community, appointed
by:
1. The Governor;
2. The President Pro Tempore of the State Senate;
3. The Co-President Pro Tempore of the State Senate;
4. The Speaker of the Oklahoma House of Representatives;
5. The Minority Leader of the Oklahoma House of
Representatives;
6. Each of the CO-Chairs of the Senate Appropriations
Subcommittee on Education; and
7. The Chair of the House Education Committee.
C. Appointments to the task force shall be made by August 31,
2007. The member appointed by the Governor shall convene the first
meeting of the task force by September 30, 2007. Members of the
task force shall elect a chair from among the membership. A
majority of the members of the task force shall constitute a quorum
to transact business, but no vacancy shall impair the right of the
remaining members to exercise all of the powers of the task force.
D. Staff support for the task force shall be provided by the
State Senate and the Oklahoma House of Representatives.
E. Members of the School Funding Formula Task Force shall
receive no compensation for serving on the task force, but shall
receive travel reimbursement as follows:
1. Legislative members of the task force shall be reimbursed
for their necessary travel expenses incurred in the performance of
ENR. S. B. NO. 925 Page 2
their duties in accordance with Section 456 of Title 74 of the
Oklahoma Statutes; and
2. Nonlegislative members of the task force shall be reimbursed
by their respective appointing authorities for their necessary
travel expenses incurred in the performance of their duties in
accordance with the State Travel Reimbursement Act.
F. The proceedings of all meetings of the task force shall
comply with the provisions of the Oklahoma Open Meeting Act and the
Oklahoma Open Records Act.
G. The task force shall study the subject matter specified in
subsection A of this section and submit a report of findings and
recommendations to the Governor and Legislature by December 31,
2007.
SECTION 2. This act shall become effective July I, 2007.
SECTION 3. It being immediately necessary for the preservation
of the public peace, health and safety, an emergency is hereby
declared to exist,by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
Passed the Senate the 24th day of May, 2007.
Presiding Officer of the Senate
Passed the House of Representatives the 24th day of May, 2007.
Presiding Officer of the House
of Representatives
ENR. S. B. NO. 925 Page 3
{